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Tech, growth stocks lead Wall Street to lower close as investors focus on interest rates

Published 03/14/2022, 06:58 AM
Updated 03/14/2022, 08:41 PM
© Reuters. FILE PHOTO: Flags are seen outside the New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022.   REUTERS/Caitlin Ochs

By Caroline Valetkevitch

NEW YORK (Reuters) - Major U.S. stock indexes closed mostly lower on Monday, led by a more than 2% drop in Nasdaq, as investors sold tech and big growth names ahead of this week's Federal Reserve meeting and an expected hike in interest rates.

The Dow ended flat, with financial and healthcare shares giving the index some support.

Developments in the Ukraine-Russia conflict added to investor caution as Russian and Ukrainian delegations held a fourth round of talks on Monday, but no progress was announced, while Russian forces allowed a first convoy of cars to escape Ukraine's besieged port of Mariupol.

Apple Inc (NASDAQ:AAPL) shares fell 2.7% and weighed the most on the S&P 500 and Nasdaq after its supplier Hon Hai Precision Industry Co Ltd, known as Foxconn, suspended operations in China's Shenzhen amid rising COVID-19 cases.

The Fed is expected to raise interest rates for the first time in three years Wednesday in an effort to combat rising inflation.

"We're seeing that rotation into value and away from growth, and a lot of that is tied to what's happening to interest rates," said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

"Equity markets are going to be challenged going forward, and today is yet another example of that."

The technology sector and consumer discretionary were the biggest drags on the S&P 500. Higher interest rates are a negative for tech and growth stocks because their valuations rely more heavily on future cash flows.

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The Dow Jones Industrial Average rose 1.05 points to 32,945.24, the S&P 500 lost 31.2 points, or 0.74%, to 4,173.11 and the Nasdaq Composite dropped 262.59 points, or 2.04%, to 12,581.22.

The Russell 2000 index of small capitalization stocks fell 1.9% and was down more than 20% from its November record closing high. The Cboe volatility index, also known as Wall Street's fear gauge, rose.

The S&P financial index rose 1.3% as U.S. Treasury yields jumped to 2-1/2-year highs. The healthcare sector advanced 0.7%, with UnitedHealth Group (NYSE:UNH) up 1%.

Energy slid 2.9%, as Brent crude fell below $110 a barrel, a week after it rose as high as $139 due to the Ukraine crisis.

Oil and other commodity prices have shot up following tough Western sanctions against Russia.

Declining issues outnumbered advancing ones on the NYSE by a 3.05-to-1 ratio; on Nasdaq, a 2.97-to-1 ratio favored decliners.

The S&P 500 posted 11 new 52-week highs and 32 new lows; the Nasdaq Composite recorded 26 new highs and 615 new lows.

Volume on U.S. exchanges was 14.26 billion shares, compared with the 13.7 billion average for the full session over the last 20 trading days.

Latest comments

COVID is back. china enjoys the show. you want your supply chains back ? how about no 😂I did will be rank 4 GDP and China rank 1
With China facing a major Covid outbreak and Q1 growth well behind 5.5% targer, supply chain will get further stretched - Fed must factor this in
anyone who tries to buy the dip in this market will get killed. this is a bear Market and we're headed for stagflation. do not buy into this downmarket
trump and republicans worship of putin, and their treasonous storming of the capitol, emboldened putler to go to war, causing the mess we're now in. Nobody in their right mind will ever vote republican again
Whats sad is this guy belives what he said!
zack steve What nonsense you speak. trump is putlers biggest cheerleader, even hailing him as a genius for invading Ukraine
no more dems in charge after midterms...once your 401k evaporates fun is over
The market has too many stupid retail investors that can't afford to invest.
this is all about the love for *****control and fear of free societies by Russia.......the answer by Russia is genocidal war.
Russia was allied w/ the genocidal Na zi
That Dow rise didnt last long. Its now negative, as well as the SP 500.
Liar Reuters... Presenting lies to rid retail traders of their hard earned money...
Liar Reuters... Presenting lies to rid retail traders of their hard earned money...
f. u. c. c. them they are stupid and cause prices to fall because of stupid fears
Lol. peace talks. joke
LOL. Putin preparing anaconda like to lay siege to Kiev and extract concessions. peace talks my azz
There should be a reverse index fund on government performance.
This article was published just now but when was this written, this morning? Go Brandon.
peace talk hmmm... how many times already?
Russia has been doing peace talks in bad faith, using talks for p.r./propaganda/psyop purposes.
Devik Jain and Sabahatjahan are dirt bag shills that would sell their mother to make a dollar.
And yet another week opens with heavy losses
Yes, rise. From the perspective of a bat.
Wall Street criminals in DOW protection mode once again.
burden is on biden as crude falling sharply. he will try to get big correction in USA MKT.again he will fail as market will boom till next rate hike. enjoy the bull run in USA MKT for 15-20 days
Reuters reports Russia bombs Hunter Biden’s house in the Ukraine, destroying all evidence of collusion with the Biden/Obama/Clinton crime syndicate… lol
Here's some non-fake news: The Russians bombed hospitals and schools and bakeries and nuke reactors and etc.
Biden is Russia's agent! The dollar will lose its power. Russia + India + China united! America + Europe lost a large piece of the Russian market.
Retrumpicans will now be confused if they should support Biden instead of Trump.
Albums you've got to get back on your meds... you sound parinoid.
Peace talks lol they are bombing women and children as we soesk
Laughingstock of the investing world.
Mitchel you're rbecoming a laughing stock with your constant refrain...
As long as dictator putin is in charge of russia there's NO PEACE. he is the last of the mohegans of the ussr. I hope he ends up hanging like Benito Mussolini.
This invasion has been twisted so its all about the US. Democrats love war don't you know?
Last I checked, the US has invaded or raided more countries than anyone on the planet, including Putin. Iraq, Afghanistan, Libya, Yemen, Syria, Nicaragua, Panama, and more. We orchestrated a coup in Ukraine 2014, installed our puppet dictator, expanded NATO to Russian borders, used Ukraine as our black ops headquarters. Then we wonder why Putin invaded.
thank you!
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